United Asiapac Energy raises $12M in IPO, shares slip 11% on debut
What's the deal? United Asiapac Energy Bhd (UAE)Dealroom has a profile for this one. Try Dealroom → raised more than US$11.7M in its debut on Bursa MalaysiaDealroom has a profile for this one. Try Dealroom →'s ACE Market, listing at a market capitalisation of US$40.8M. Shares opened at the IPO price of 35 sen but fell 11.4% to close at 31 sen, touching an intraday low of 29.5 sen.
Why now? The listing was delayed roughly a month from the original August 19 date after UAE said it would issue a supplementary prospectus detailing a new contract. Despite the slip on debut, retail demand had been oversubscribed 21.02 times.
What's the endgame? UAE operates out of Kemaman, Terengganu, and Labuan, providing upstream support services such as plug and abandonment, sidetracking, and fishing services for retrieving trapped oil well equipment. The IPO comprised only new shares — no existing shareholders cashed out.
Where the money goes: Almost half the proceeds will fund well-intervention tools and equipment within 36 months. UAE has also earmarked US$1.32M for a new corporate office, US$1.26M to expand its workforce, US$1.09M for working capital, US$573.9K to recruit engineers, and US$679.1K to repay bank borrowings.
What they said: Managing director Ahmad Fadzuli Ali said the company remains "steadfast in our commitment to the highest standards of governance, transparency and accountability." He added that the revised timeline did not change UAE's long-term strategy or growth plans.
The signal: A weak first-day close against strong retail demand underscores investor caution around small-cap oilfield service listings, even as the offering fully funds UAE's push to expand its well-intervention capacity.
Image credit: bseegov
